By Chris Becker
Friday’s nights action was mixed again, with European stocks falling slightly, a muted session in the US while bonds rallied everywhere with some big gains on the majors, especially Treasuries and Bunds. The US dollar rallied a little before being sold off to its weekly lows as the University of Michigan consumer confidence shocked with a significantly lower print, alongside a reversal in April’s industrial production.
Recapping Asia, the Shanghai Composite fell back 1.7% to just above 4300 points and needs to start accelerating from here or momentum (40 period CCI in green in the lower chart, my preferred indicator in all charts) will slip into negative territory pushing the bubble over to 4000 points: